While you do business as a Sit Means Sit franchise, we recommend new entrepreneurs incorporate to take advantage of liability protections and secure tax advantages, unless your individual circumstances are more complex. Yes, there are plenty of forms to fill out and submit, along with fees to pay, no matter in which state you intend to operate your franchise. But certain services (like LegalZoom.com) can simplify the process and provide you forms to file with your state.
The process gets complicated if you can’t decide which structure to assume — “C” Corp, “S” Corp, “LLC” or a partnership structure. BizFilings.com offers a credible comparison chart of each option (see chart as PDF). Nevada and Delaware are states with the most registered corporations, in light of some significant tax advantages. However, you will probably be subject to additional paperwork in your own state of residence, particularly if you have employees. You will also have to qualify to do business in your home state, regardless if you opt to incorporate in Nevada or Delaware.
The internet will prove to be invaluable as you research your incorporation. Spending the small amount needed to hire a local accountant for help is money well spent in the business formation stage, particularly if you intend to form a partnership.
Here are three sites that offer good advice on incorporation:
eHow.com,
MoreBusiness.com
Socrates.com
Business.gov has links to all states regarding corporate registration.
Here are three books that offer good advice on incorporation:
Incorporate Your Business: In Any State by Michael Spadaccini. Entrepreneur Press; ISBN: 9781599181066
Incorporate Your Business by Anthony Mancuso. ISBN: 1413306365
Incorporating Your Business For Dummies by The Company Corporation; ISBN: 9780764553417
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